Purchase of flat where bmc has not renewed land lease
Querist :
Anonymous
(Querist) 26 April 2024
This query is : Resolved
I intend to purchase a flat in the Cuffe Parade area of Mumbai. Although the flat ownership papers are clear it has come to light that the leasehold land of BMC on which the building resides has not been renewed in over 10 years. I have been informed that this is common practice for many buildings in the area. Is there a risk of BMC ever taking back possession of the land (and thus my flat) away citing this reason. Are flat owners protected from losing their flat and investments through any law? And finally, if BMC renews the lease will it be at exhorbitant market rates that currently stand? Thank you.
Isaac Gabriel
(Expert) 26 April 2024
"buyers beware" theori will be applicable.Not advisable to take risk.
T. Kalaiselvan, Advocate
(Expert) 26 April 2024
No law will come to your rescue if you indulge in any illegal activity.
you pretty well know that it is illegal to buy the property from the seller who do not have any rights or interest in the property now being sold, then what makes you to ask this question here.
If you think that everyone are doing it and they did not find any problem, then you may proceed as per your own prudence.
if you ask about the legal validity, it is reiterated that it is not advisable to purchase the property from the seller who is not having proper title to sell the property
Querist :
Anonymous
(Querist) 27 April 2024
Dear sirs, thanks for your replies however it seems you have misunderstood the query. I am not asking about the papers related to flat ownership. I have mentioned there is no issue with that. I am asking about the land on which the building resides. In Mumbai most land like this one is on leasehold with the municipality of Mumbai - BMC. In many cases it is common that they have not renewed the lease for many years but residents continue to stay in the building for generations. My question relates to this, whether BMC has a right to take over the land anytime they wish or are they bound by law to renew the lease as payments were made by the society till the time the lease expired. Thank you
T. Kalaiselvan, Advocate
(Expert) 27 April 2024
If the land lease agreement has expired long ago and has not been renewed then the authorities have rights to retrieve the government land as per law
They may issue a legal notice to vacate and deliver vacant possession failing which they are empowered to seize the government land to retrieve it.
kavksatyanarayana
(Expert) 30 April 2024
Yes. Agreed with the views of the above learned experts. It is not advisable to buy such property.
P. Venu 
(Expert) 04 May 2024
The property is situated in Cuffe Parade, part of the Original City of Bombay. Greater Bombay (Mumbai) consists of two districts, City of Bombay and Bombay Suburban District. The former consist of the seven islands handed over by the Portuguese rules (as dowry) and because of historical reasons, the land tenures, are unique.
Lands assigned on lease for development purposes is a consequence. It is incorrect to take them to be lease in terms of Transfer of Property Act; they are rather kowls. It has been the system the leases are renewed as a matter of routine. May be, lease amounts could be enhanced during renewal.
